Private Rent Growth Eases but Costs Stay High

Average private rents across England and Wales continue to rise, but the pace of growth is now slowing, according to the latest official and market data. While this will offer some reassurance to tenants, rents remain at historically high levels and affordability pressures persist in many areas.

The latest Price Index of Private Rents from the Office for National Statistics shows that average UK monthly private rents increased by 4.4 per cent in the 12 months to November 2025, reaching £1,366 per month. This marks a slowdown from the 5.0 per cent annual increase recorded a month earlier and is the lowest annual growth rate since mid-2022. 
(Source: ONS private rent bulletin, December 2025)

In England, average rents rose to £1,422 per month, an increase of £60 over the year. Annual rent inflation slowed to 4.4 per cent, down from 5.0 per cent in October, continuing a clear trend of easing growth. Despite this moderation, rents remain substantially higher than they were just two years ago, reflecting the cumulative impact of sharp increases during 2023 and early 2024.

Wales continues to see stronger rental growth than England. Average monthly rents reached £820, up 6.1 per cent (£47) over the year. Although this is below the record highs seen in late 2023, it underscores that rental pressures remain particularly acute in parts of Wales, especially given lower average incomes.

Regional patterns in England show a widening gap between areas. The North East recorded the highest annual rent inflation at 8.4 per cent, despite this also easing slightly from the previous month. By contrast, London saw the slowest growth, with rents rising by just 2.8 per cent over the year. London's annual rent inflation has now been slowing for a full year, falling sharply from its peak in late 2024. Even so, it remains by far the most expensive region, with an average rent of £2,271 per month, compared with £759 in the North East.

Local variations remain stark. Tenants in prime central London continue to pay the highest rents in the country, while cities such as Oxford remain among the most expensive outside the capital. These differences highlight the importance of looking beyond national averages when assessing affordability.

Market data from the flatshare website SpareRoom paints a similar picture for those renting rooms rather than whole properties. Its latest Rental Index shows the average cost of renting a room across the UK at £753 per month in Q3 2025 -- the highest figure on record -- although annual growth has slowed to just 0.8 per cent. 
(Source: SpareRoom Rental Index)

London remains the most expensive place to rent a room, with an average of £995 per month, around 37 per cent higher than five years ago. Outside the capital, places such as Twickenham, Kingston upon Thames and Oxford continue to command well above-average room rents, while towns in the North of England remain among the cheapest.

Taken together, the data suggest that while rent inflation is easing, the underlying cost of renting remains very high.